NBCUniversal's Peacock streaming service recently secured the rights to broadcast NBA games starting in the 2025 season, after making a substantial bid of $2.45 billion per year. This move was seen as a strategic investment by NBC Sports President Rick Cordella, who was encouraged by the success of a recent exclusive NFL playoff game shown on Peacock. The game garnered 27.6 million viewers, making it the largest live-streamed event in U.S. history.
The decision to invest in NBA rights was driven by the desire to make Peacock profitable in the face of a changing media landscape where traditional pay-TV models are declining. Research firm Antenna reported that Peacock gained 3 million new subscribers after the NFL game, with over 70% of them remaining with the service two months later.
NBCUniversal's goal is to ensure the longevity of Peacock in a competitive streaming market dominated by platforms like Netflix, Amazon Prime Video, and Disney+. By offering exclusive NBA games, NBCUniversal aims to attract and retain sports fans, who may also engage with other content on the platform. This strategy aligns with broader industry trends, where companies are investing in diverse content offerings to drive subscriber retention.
Despite the significant financial commitment involved in securing NBA rights, Comcast has outlined various strategies to make the investment profitable. These include leveraging the NBA to drive higher retransmission fees and advertising revenue, as well as potentially benefiting Comcast cable by increasing broadband usage through Peacock.
Overall, NBCUniversal's acquisition of NBA rights reflects a strategic move to strengthen Peacock's position in the streaming market and ensure its relevance in the evolving media landscape. The decision underscores the importance of exclusive sports content in attracting and retaining subscribers, while also highlighting the broader shifts towards streaming as a primary mode of content consumption.